Thames Water Competition
Now Viewing Thames Water's competition in: Water & Sewer Utilities (primary)
Recent Developments
Lowering Municipal Borrowing Costs - Legislation introduced in the House intends to reduce borrowing costs for municipalities; investment in water and sewer systems may increase as a result. The Municipal Bond Fairness Act would eliminate the ability of the rating agencies to use separate standards for municipal and other bonds. Many experts say that the separate standards result in inaccurate ratings of municipal bonds, so the cost of insuring municipal bonds is often higher than it should be. Water and sewer utilities may benefit if the borrowing cost of municipal bonds that fund investments in water and sewer utilities is lowered.
Utility will Sell Sewer Gas - Water and sewer utilities are turning a waste product of their operations into a revenue source. The San Antonio Water System (SAWS) approved a 20-year contract to sell sewer gas from its wastewater treatment plant to renewable energy company Ameresco. SAWS expects the contract to result in $200,000 to $250,000 of annual revenue that will help offset its $2.3 million annual energy bill.
Proliferation of Nanosilver Growing Concern - The growing proliferation of nanosilver in consumer products may place large numbers of people and broad areas of the environment at risk, warns a report by the Woodrow Wilson International Center for Scholars (WWICS). Products like silver-treated socks, washing machines that discharge silver ions, and silver-coated food containers release nanosilver particles that jeopardize the efforts of water and sewer utilities to keep silver out of the aquatic environment, according to the National Association of Clean Water Agencies. The WWICS report calls for more research to assess environment risks and develop new ways to ensure safe use and disposal of nanosilver.
Competitive Landscape
Demand depends on commercial and residential water needs, which are partly related to population growth and partly to the level of economic activity. The profitability of individual companies depends on efficiency of operations, because prices are fixed by public utility commissions (PUCs). Large companies have economies of scale in operations and the ability to raise capital for infrastructure improvements. Small companies can compete successfully through superior engineering or by serving smaller local markets. The industry is capital-intensive: average annual revenue per employee at the large companies is $250,000.
Water & Sewer Utilities Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US water and sanitary services is forecast to increase at an annual compounded rate of 4.9 percent between 2008 and 2013.
Water & Sanitation Services Growth Levels
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

- Demand: Demand linked to population growth
- High fixed costs
- Risk: Greater state and local regulation
Industries Where Thames Water Competes
- Energy & Utilities
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Water Utilities (primary)
- Wastewater Treatment
- Water Distribution
- Utility Services
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Water Utilities (primary)





